A sharp rise in departure tax refunds for overseas visitors helped drive a rebound in inbound consumption in China in 2025, as a broad set of policies aimed at stimulating domestic demand began to gain traction, official tax data showed.

According to the State Taxation Administration, the number of foreign travelers applying for departure tax refunds rose 305 percent year-on-year in 2025. Sales of tax-refundable goods increased 95.9 percent, while the total value of tax refunds issued climbed 95.8 percent, reflecting improved shopping incentives for inbound tourists.

China has expanded the policy by lowering the minimum spending threshold for refunds, raising the ceiling for cash refunds, simplifying store registration procedures and promoting an "instant refund upon purchase" model.

The number of departure tax refund stores nationwide rose to 12,930, including more than 7,000 offering instant refunds. The rebound in inbound shopping comes as China intensifies efforts to bolster consumption.

Tax invoice data show consumer appetite for high-quality and smart products strengthened in 2025, helped by trade-in subsidy plans.

Retail sales of household appliances such as refrigerators rose 17.4 percent year-on-year, while kitchen and bathroom equipment increased 12.9 percent and communication devices including smartphones climbed 18.6 percent.

Demand for new energy vehicles also remained strong. Unified motor vehicle sales invoices showed that the sales volume of new energy passenger cars rose 24.3 percent, with related sales revenue up 21.1 percent.

Spending tied to culture and tourism also picked up. Revenue from artistic creation and performance grew 17.3 percent year-on-year. Travel agencies and related services posted growth of 11.2 percent, scenic spots rose 26.1 percent, and leisure sightseeing activities increased 14.6 percent, supported by immersive and experience-driven offerings.

Digital consumption continued to expand as technologies such as artificial intelligence and virtual reality became more integrated into daily life. Sales revenue for internet-based lifestyle service platforms grew 9.4 percent, while food delivery services rose 13.3 percent. Digital cultural services, including gaming and animation, increased 16.6 percent.

Shi Zhengwen, head of the fiscal and tax law research center at China University of Political Science and Law, said the diverse consumption gains showed that targeted pro-consumption policies were having a "precise and effective" impact.

He said trade-in programs, new consumption formats and rising spending by seniors, children and inbound tourists were broadening the consumption base and helping shift demand toward more diversified and high-quality goods and services, providing strong support for economic growth.